Which Wage Distributions are Consistent with Statistical Discrimination?

Abstract

We derive a non-parametric test for statistical discrimination that can be applied to cross-sectional wage data. Specifically, we show that the wage distributions for two groups (with identical observable characteristics) are consistent with a general reduced-form model of statistical discrimination if, and only if, neither wage distribution first-order stochastically dominates the other. Our model allows us to interpret a rejection of this condition as evidence of bias.

REGISTRATION

If you have any questions regarding the seminar, please contact the seminar organizers Katrine V. Løken, Heidi C. Thysen, Eirik G. Kristiansen or Helene Bjørndal Fosse.